ECB Indicator Shows Eurozone Wage Growth To Slow Sharply To 3.1% This Year

BBC LIVE

The European Central Bank (ECB) reported on June 11, 2025, that a measure based on collective bargaining agreements in the euro area indicates a significant slowdown in negotiated wage growth for 2025. This development supports expectations that inflation will remain close to the ECB's 2% target. The easing of wage growth is seen as a positive signal for maintaining price stability, as it reduces pressure on businesses to raise prices to cover labor costs. This aligns with recent ECB statements emphasizing vigilance over inflation trends amid improving economic conditions in the eurozone.